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Financial Glossary

Every financial term, defined in plain English — with links to the calculators where each concept comes to life.

All Terms

Browse alphabetically or jump with the letter navigation. Every definition links to a hands-on calculator where you can see the concept in action.

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401(k)An employer-sponsored retirement account in the U.S. that lets employees invest pre-tax salary, often with employer matching contributions.

A

AmortizationThe process of paying off a loan through fixed periodic payments, where the split between interest and principal shifts over…
APR (Annual Percentage Rate)The yearly cost of borrowing money, expressed as a percentage, including interest and certain fees.
APY (Annual Percentage Yield)The real yearly return on savings or an investment, including the effect of compounding.

B

Break-Even PointThe sales level at which total revenue equals total costs, producing neither profit nor loss.

C

D

E

I

L

LiquidityHow quickly an asset can be converted to cash without losing value.

N

Net WorthEverything you own minus everything you owe — the single best snapshot of financial position.

P

R

Roth IRAA U.S. retirement account funded with after-tax money, where qualified withdrawals in retirement are tax-free.